Chinese International Property Investment Trends in 2016
Over the last few years, the world has seen an increasing demand for international properties among Chinese buyers. The B2B property platform – Investorist surveyed 150 Chinese real estate agent companies, in order to forecast international investment trends in China for the year 2016. As the leading real estate company in Berlin, we present you the results and the analysis together with our extensive experience with Chinese investors.
The reasons why Chinese will invest more in overseas properties in 2016
Source: China 2016 International Property Outlook, Inventorist.com
149 out of 150 survey participants expect that Chinese demand for overseas property investment will keep increasing.
The main concern for Chinese investors remains the same – financial market volatility. Therefore, seeking a safe investment will be the most important reason for them to keep buying international properties.
Having a lot of experience with Chinese investors, we are aware of their main concern. Chinese stock market in 2015 showed that financial market stability can be extremely vulnerable. Unexpected government regulation and policies can also result in a financial market disturbance. Therefore, even though the government has been restricting the overseas assets transfer, the Chinese investors still seek possible routes to transfer their assets or emigrate to more financially stable markets.
Residential overseas properties that Chinese prefer to buy
Source: China 2016 International Property Outlook, Inventorist.com
As most of the Chinese buyers come mainly from urban cities, where apartments are the dominant residential type, they favour this type of property to invest in. For other 24% of Chinese investors, it will be more interesting to purchase a townhouse instead. This is usually a group of immigrants interested in especially in education.
At Rubina, the majority of our Chinese clients are more interested in purchasing small-medium size apartments instead of large villas. For most of them, the most common reason is their children, currently studying in Germany.
Chinese investor’s budget for overseas property in 2016
Source: China 2016 International Property Outlook, Inventorist.com
For the majority of Chinese investors, the budget falls in the range of $500K-$700K. According to the survey, more than 90% participants believe that Chinese buyers will spend more than half a million USD for a property purchase.
Primary considerations
Source: China 2016 International Property Outlook, Inventorist.com
According to the survey, the Chinese evaluate the property very carefully before they put the money down. When investing abroad, they seek the local expert advice on price, location, property type and mortgage.
The survey results are in agreement with our experience at Rubina. Chinese buyers consider many factors before they make a decision, as they are also very concerned about high returns on the investment. The location is always an important factor, they take into consideration – city centre, university neighbourhood, vicinity to the parks and lakes. In addition, Chinese like to use financial leverage whenever possible. Financial institutions in Germany currently offer very low-interest rate which is considered by many Chinese as the ideal time to invest in Germany, while the United States and Australia keep tightening mortgage regulations.
